Two recent bills signed by President Biden in December 2024 change ACA reporting requirements.
Applicable large employers (ALEs) are required to file a return with the IRS that reports certain information about health care coverage that the employer offered or did not offer to each eligible employee. Until now, ALEs were required to also provide a copy of that report to each individual included on the return.
Effective for calendar years after 2023, employers may furnish Form 1095-C, Employer-Provided Health Insurance Offer and Coverage to individuals by request only. Employers must notify employees in a manner that is clear, conspicuous, and accessible. Once a request has been made, the employer must respond the later of January 31 of the year the form was required to be furnished or 30 days after the request.
Further, employers can provide ACA reports electronically if the employee has consented to receive electronic reporting. The employee can revoke the request in writing.
And lastly, if an employer is unable to obtain the tax identification number of an individual included on the return, the employer may use the individual’s full name and date of birth.
The due date for providing 2024 ACA forms to employees is March 3, 2025.
